Public Support for Innovation, Intangible Investment and Productivity Growth in the UK Market Sector

Jonathan Haskel () and Gavin Wallis

No 4772, IZA Discussion Papers from IZA Network @ LISER

Abstract: Pressure on public finances has increased scrutiny of public support for innovation. We examine two particular issues. First, there have been many recent calls for the (relatively new) UK R&D subsidy to be extended to other "research" activities, such as software. Second, argument still rages about the efficacy of direct public spending on R&D via spending on academic research councils, universities, and government undertaken work on civil and military R&D. To evaluate these questions we use data on market sector productivity, R&D and non-R&D intangible assets, and public sector R&D spending. We look for evidence of market sector spillovers from intangible investment and from public R&D. We find (a) no evidence of spillover effects from intangible investment at the market sector level, including from R&D, (b) strong evidence of market sector spillovers from public R&D spend on research councils, and (c) no evidence of market sector spillovers from public spending on civil or defence R&D. Our findings tentatively suggest that for maximum market sector productivity impact government innovation policy should focus on direct spending on research councils.

Keywords: R&D; productivity; intangible assets; spillovers (search for similar items in EconPapers)
JEL-codes: E22 O47 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2010-02
New Economics Papers: this item is included in nep-agr, nep-eff, nep-ino and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Published - published in: Economics Letters, 2013, 119 (2), 195-198

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Related works:
Journal Article: Public support for innovation, intangible investment and productivity growth in the UK market sector (2013)
Working Paper: Public support for innovation, intangible investment and productivity growth in the UK market sector (2013)
Working Paper: Public Support for Innovation, Intangible Investment and Productivity Growth in the UK Market Sector (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp4772

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